Brazil submitted today, February 8, 2017, a request for consultations with Canada, under the World Trade Organization (WTO) Dispute Settlement System, on subsidies granted by the Canadian Government to the aircraft industry, at the federal, provincial and local levels, in particular the Bombardier C-Series program.
In Brazil's understanding, Canadian subsidies artificially affect the international competitiveness of the sector, in a manner incompatible with Canada's obligations within the WTO. In 2016 only, Bombardier received at least US$ 2.5 billion in government support. New contributions have been announced, which may further deepen distortions in the aircraft sector, to the detriment of Brazilian interests.
The Brazilian Government expects that the consultations, which constitute the first phase of a dispute under the WTO Dispute Settlement Mechanism, contribute to the solution of the problems raised.
The two countries shall agree upon date and place of the consultations in the coming weeks.